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NAT 5 Business > Marketing > Flashcards

Marketing Flashcards

1
Q

Why do businesses do market research ?

A

To find out what customers want ( product, place price and promotion ) and what their competitors are doing

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2
Q

What are the two types of market research (2)

A
  • desk

- field

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3
Q

What are the advantages of field research (3)

A
  • up to date
  • specific to your organisation
  • choose target for research
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4
Q

Disadvantages of field research

A
  • time consuming

- expensive

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5
Q

What are the advantages of desk research

A
  • time effective

- cost effective

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6
Q

What are the disadvantages of desk research?

A
  • can’t guarantee it’s reliable

- might not be up to date

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7
Q

What does the marketing mix consist of?

A
  • product
  • place
  • promotion
  • price
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8
Q

Product development (6)

A
  • market research carried out
  • ideas for product based on market research
  • model created
  • hall tests carried out and feed back given
  • changes made based on testing
  • method of production chosen
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9
Q

methods of field research (4)

A
  • survey (online, telephone, paper)
  • personal interview
  • hall test
  • focus group
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10
Q

what are the stages of the product life cycle (4)

A
  • product development
  • growth
  • maturity
  • decline
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11
Q

what are the advantages of product branding? (4)

A
  • higher prices can be charged therefore they would generate a higher profit
  • people trust the brand so new products can be easily introduced
  • encourages repeat customers
  • makes business more recognisable so the company will not need to advertise as much
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12
Q

what are the disadvantages of product branding? (3)

A
  • in one product gets a bad reputation it can affect all products
  • some business will copy your brand increasing competition
  • establishing a brand is time consuming and expensive
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13
Q

what factors should a business consider when setting a price ?(6)

A
  • cost (employees, raw materials etc)
  • competitions pricing
  • demand
  • profit expectations
  • image company wants to portray
  • product availability
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14
Q

what are the pricing strategies (6)

A
  • premium pricing
  • competitive pricing
  • destroyer pricing
  • cost plus pricing
  • price skimming
  • penetration pricing
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15
Q

what is premium pricing ?

A

when a business makes the price for their product high to make they’re product seem more desireable

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16
Q

what is competitive pricing?

A

this is when a business sets its price equal to competitors

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17
Q

what is penetration pricing?

A

when a business starts it’s prices low to attract customers and gradually increases them

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18
Q

what is price discrimination?

A

this is when a business sets similar goods at different prices

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19
Q

what is destroyer pricing?

A

this is the illegal act of a business setting their prices so low it puts competitors out of business

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20
Q

what is cost plus pricing?

A

this is when a business calculates how much it will cost to make the product then add the % the aim to make onto it

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21
Q

what is price skimming

A

this is when a business sets their prices originally high and gradually lowers them

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22
Q

what is demand pricing

A

this is when a business raises prices when the product is higher in demand and vide versa

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23
Q

what is promotional pricing?

A

short term reductions to entice sales

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24
Q

what factors are involved in where you place your business?(9)

A
  • employee availability
  • close to customer
  • local community
  • environmental impacts
  • product image
  • suitable infrastructure
  • availability of suitable premises
  • competition location
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25
Q

Stages of the product life cycle (4)

A
  • introduction
  • growth
  • maturity
  • decline
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26
Q

What are the advantage of product branding? (4)

A
  • higher prices can be charged and therefore generate a higher profit
  • new products easily introduced as people already trust the brand
  • encourages repeat customers
  • not need to advertise as much
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27
Q

What are the disadvantages of branding?(3)

A
  • if one product gets a bad reputation it effects all
  • some businesses will copy your brand, increasing competition
  • establishing a brand is time consuming and expensive
28
Q

Factors to consider when the business sets its price (6)

A
  • cost ( employees, raw materials etc)
  • competitions pricing
  • demand and supply
  • profit expectations
  • image company wants to give
  • product availability
29
Q

What are the different pricing strategies business could use?(8)

A
  • premium pricing
  • competitive pricing
  • penetration pricing
  • destroyer pricing
  • loss leaders
  • cost plus pricing
  • demand pricing
  • promotional pricing
30
Q

What premium pricing?

A

This is when a business puts its prices high to make the product seem more desirable

31
Q

What is competitive pricing?

A

Setting the price of good or service equal to competition pricing

32
Q

What is penetration pricing?

A

Setting a low initial price to attract customers then gradually rising them

33
Q

What is destroyer pricing?

A

Illegal practice of setting prices so low it puts competition out of business

34
Q

What is a loss leader pricing strategy?

A

Pricing below market price to stimulate other goods and services

35
Q

What is cost plus pricing?

A

Add up all costs involved in making a product then add the percentage of profit they want to make on

36
Q

Price skimming

A

Setting the prices high then gradually lowering

37
Q

What is demand pricing?

A

Setting higher prices when the product is in demand and vice versa

38
Q

What is promotional pricing

A

Short term reduction on price to entice sales

39
Q

What should you consider when deciding where to place your business?

A
  • be close to your customer
  • employee availability
  • government incentives
  • environmental impacts
  • local community
  • suitable infrastructure
  • product image
  • availability of suitable premises
  • competition
40
Q

How does being close to your customer effect the business?

A

If a business is close to the customer they will not have to travel very far, therefore increasing customer satisfaction

41
Q

How does employee availability effect where the business is situated?

A

The business wants to be in a place where there are employees available with the right skills so the business can do its best

42
Q

Hood government incentives effect where a business is situated?

A

If the government wants a business to bring jobs to a certain place, they often offer the business money to set up there

43
Q

How do environmental impacts effect where the business is situated?

A

If the place the business wants to set up is environmental, the business can not open encase wildlife is damaged

44
Q

How does the local community effect where the business sets up?

A

If the local community complains/ petitions negatively about a business, this could have it closed down

45
Q

How does having suitable infest-structure effect where the business situates ?

A

The inside of the building needs to have a suitable layout to meet requirements. This avoids more money being spent on altering the building

46
Q

How does product image effect where the business is situated?

A

If a shop located in an upmarket street, the customer may assume the products are better quality and therefore more desirable

47
Q

How does the availability of suitable premises effect where the business situates?

A

The capacity of the businesses premises needs to be the right size to function properly

48
Q

How does competition effect where the business situated?

A

Need to make sure the business is set up where there are no competitors

49
Q

What are the methods of distribution?

A
  • road
  • rail
  • air
  • sail
50
Q

What are the advantages (2) and disadvantages (2) of using road as a method distribution

A 
Advantages 
- quicker for short distance 
- easy to park close to business 
Disadvantages 
-traffic issues
- can’t transport major capacity of goods
51
Q

What are the advantages (2) and disadvantages (2) of using Air as a method of distribution?

A 
Advantages 
- quickest long distance transport 
- not just land based 
Disadvantages 
- expensive 
- need to use other methods of distribution to get to final place
52
Q

What are the advantages (2) and disadvantages (2) of rail as a method of distribution

A 
Advantage 
-Little congestion/ obstruction 
- increased capacity
Disadvantage 
-still have to use road to final distribution 
- only land based
53
Q

What are the advantages (2) and disadvantages (2) of sail as a method of distribution

A 
Advantages 
- massive capacity 
- good for long distance 
Disadvantages 
-slow
- weather dependant
54
Q

What are the methods of advertising (6)

A
  • TV adverts
  • outdoor media
  • magazines
  • online adverts
  • celebrity endorsement
  • cinema adverts
55
Q

What are Tv adverts? ( description, advantage and disadvantage)

A

Description - moving image with sound and colour
Advantage- source of entertainment
Disadvantage - can be skipped / ignored

56
Q

What is outdoor media?( description, advantage and disadvantage)

A

Description- any advert in public
Advantage - targets a range of people
Disadvantage- can get ignored and people get used to them

57
Q

What is a magazine advertisement ( description, advantage and disadvantage)

A

Description- colourful picture/ bold writing
Advantage- permanent
Disadvantage- can be ignored

58
Q

Online adverts (Description, advantage and disadvantage)

A

Description- flashy tones and bold colours/text
Advantage- permanent feature
Disadvantage - expensive

59
Q

Celebrity endorsement ( description, advantage and disadvantage)

A

Description - when celeb promotes a brand or product
Advantage- people look up to celebs
Disadvantage - expensive

60
Q

Cinema adverts ( description, advantage and disadvantage)

A

Description - movie colourful picture
Advantage- can’t escape watching
Disadvantage - can be ignored

61
Q

What are the different things businesses can offer peoples a method of promotion? (6)

A
  • free samples
  • demonstrations
  • buy one get one free
  • student discounts
  • free delivery
  • free offers
62
Q

How can a business be ethical?(4)

A
  • any claim a business makes has to be backed up by evidence
  • not physically or digitally editing a product
  • no hidden fees
  • free trials easy to cancel
  • not making terms and conditions complicated
63
Q

What is market segmentation

A

Instead of trying to serve all customers equally, a business will focus on different parts of the market

64
Q

How can the market be segmented ?(7)

A
  • age
  • gender
  • job
  • income
  • life style
  • religious beliefs
  • location
65
Q

Why does a business use market segmentation ?

A
  • allows the business to make a product more aligned to a group of people to raise sales
  • narrows down market research to benefit your results
  • allows business to tailor price appropriately
  • decide an appropriate place to sell product
66
Q

What are the methods of field research?(5)

A
  • interview
  • hall test
  • online survey
  • focus group
  • postal survey
67
Q

What is an advantage and disadvantage of an interview as a method of market research

A

Advantage- interviewer can ask person to clarify a point

Disadvantage - interview can only target o e person at a time

NAT 5 Business (2 decks)

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